Comment: A stronger Co-op will be good for the sector

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There’s a lot to like about what the Co-operative Group stands for and the values that permeate how it conducts its business.

There’s an increasing amount to like about its food stores, with an already improved private-label range poised for further enhancement and a growing number of modernised shops with better credentials in fresh.

Despite these improvements, a wander round a store or two creates an impression of a business where attention to detail remains frustratingly elusive.

Two recent personal spots were a promotional display for Cadbury filled with Mars bars, and a massive stack of beer on offer with a large sign proclaiming a discount on Curlsburg.

Such oversights are frequently combined with yawning gaps, borderline inexplicable merchandising decisions and a pricing/promotion regime that fails to offer a compelling value proposition.

In fairness, retail boss Steve Murrells appears to be aware of the shortcomings and aims to address them. Initiatives under way include a belated move into ecommerce, as well as endeavours to fix logistics, replenishment, pricing, availability, service and assortment.

The food division has had a number of heavyweight appointments that mean the management team tasked with taking the business forward is as strong as it’s ever been.

In theory, the Co-op should be one of the more robust performers, thanks to its 2,700 community stores in an era when shoppers are exhibiting unbridled enthusiasm for convenience. But weaknesses in execution have held it back and it will be interesting to see how quickly remedies gain traction.

As ever, communication will be key. The Co-op will have a number of messages to impart on topics such as own-label, sharper pricing, provenance, fair trade, membership and community. It will be paramount to ensure these messages are not lost amid value-led communication.

The Co-op has an emotional resonance with shoppers that other retailers would kill for and it might be that building on this, rather than shouting about half-price cornflakes, would be the best way forward. I wish it luck. A stronger Co-op is good for shoppers and for the sector.